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8 Tips to Improving Your Credit Score

Posted on February 12, 2015 by Kim Fein

Your credit score can have a major impact on your life. Not only do creditors typically check your score when deciding whether or not to approve your application and what interest rate to charge you if you are approved, but landlords, insurance companies, and even employers often check it as well. Having a good score can help you achieve your goals quickly and at the lowest possible cost.

The following 8 tips can boost your credit score:

Always pay on time. Your payment history makes up the largest chunk of your credit score, so making your payments on time is extremely important.

Pay down existing debt. Even if you have never missed a payment, a large debt load will lower your score. Explore ways you can lower your interest rates and free up cash to make more than the minimum payments.

Avoid taking on additional debt. Besides paying down existing debt, make an effort to not take on more debt in the future. For revolving credit, ideally you should not charge more than you can pay off in full the next month, but at the very least, try to keep the balance well under half of the credit limit.

Check your report for errors. Many reports contain score-lowering errors. Check your credit report from the three bureaus at least annually, and send a dispute letter to them if you notice any errors. You can get a free copy of your reports once a year at Annual Credit Report Website.

Keep your old accounts. A long credit history with the same accounts indicates stability.

Limit balance transfers. While transferring balances to “teaser rate” cards can be a way to efficiently get out of debt, it can also have a detrimental effect on your credit score. The accounts will be new and likely have balances close to the limit to maximize the advantage of the low rate – two factors that lower your score.

Avoid excess credit applications. When you apply for credit, your score decreases just a bit. If you do it frequently, a creditor may see it as a sign that you need to rely on credit to pay your bills.

Be patient. It may feel like credit mistakes can haunt you forever, but remember that your payment history from the past two years is much more important than what happened before that. Also keep in mind that most negative information is removed from your report after seven years.

Lenders use your credit score to determine your financial trustworthiness. They’re more inclined to give money to people who will successfully pay it back. To prove your trustworthiness, you must demonstrate through example. Also do yourself a favor and save some money. No one can legally remove accurate and timely negative information from a credit report. Don’t believe anyone who says they can, it’s a sign of a scam. The fact is there’s no quick fix for creditworthiness. You can improve your credit report legitimately, but it takes time, and a conscious effort.

Attention to detail and a wonderfully friendly staff are just a few of the attributes I would use to describe the R.I.A. Federal Credit Union in Tomah.

One of the most unique qualities about the employees is that they are always looking out for my best interest. Unlike other lending institutions I have worked with, they will present you with multiple options when it comes to lending, explaining each along the way, so that I am able to make an educated decision rather than signing paperwork and 20 minutes later wondering what it is I signed. Peace of mind is invaluable when it comes to your finances, and I have found that at R.I.A. Federal Credit Union.

Michael, Tomah

I am now on my fifth auto loan through R.I.A. Federal Credit Union. Their staff are very knowledgeable, customer-friendly and always remember my name, and their interest rates are superb. I would recommend R.I.A. to everyone for any of their financial needs.

Chris, Tomah

I love the R.I.A. Federal Credit Union branch in Savanna because of the well trained and dedicated supervisor. The service representatives are very knowledgeable and helpful. The central location is desirable offering a wide range of quality financial services.

Irv, Savanna

So glad I made the switch to R.I.A. Federal Credit Union awhile ago. They take the time to remember their members names and even voice when they call in all the time. Super friendly staff and excellent customer service always! I absolutely love doing business with them.

Briana, Coal Valley

We opened our accounts in October of 2010. We immediately felt welcome into the R.I.A. Federal Credit Union family. The entire staff has been friendly, helpful with any and all problems or questions. Very professional to deal with.

Jerry & Rosann, Silvis

Our son being the Lil’ Saver at the Mallard’s game was such a great experience. Thank you so much! It really is an amazing opportunity that you do for the kids.